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SAP™ Business One & Ratio Dairy One


Challenges, Strategies, and Benefits The Solution


Challenges, Strategies, and Benefits The Solution


The Dairy Industry Ecosystem

Farmer

Supplier Dairy

Collect Raw Milk

Tank Truck

Dairy Production

Raw Material, Packaging, Service Add. Purchase of Raw Material / Raw Milk

Retailer Distr. Centers Wholesaler Broker

Sell Raw Material and Ingredients

Cooperatives

 SAP AG 2006

Authorities

External Laboratories


Dairy Companies Often Have the Right Focus and the Right Strategies…

 Protect and enhance revenue YOUR FOCUS  Improve margins

 Improve time-to-market Operational Excellence  Enhance operational efficiency Product Leadership Improve Customer Satisfaction

 SAP AG 2006

Y G E A R T S e sin u B

 Drive for lower costs Increase Shareholder Value  Increase Revenue Profit Margins Get closer to theand consumer

YOUR FOCUS Increase Shareholder Value Increase Revenue and Profit Margins Cost Leadership Product Leadership Improve Customer Satisfaction


…But Mostly They Lack the Ability to Execute Often employees cannot execute the company’s business strategy because the business platform is …

COMPLICATED TO OPERATE

Y G E A R T S e sin u B

 Complex and broken process flows  Incomplete or hidden information

DIFFICULT TO CONTROL  Lack of visibility  Lack of traceability

CHALLENGING TO CHANGE  Multiple costly integration points  Redundant and inconsistent data

A business enabler is required to help the organization refocus on business strategies!  SAP AG 2006

Business Enabler Ability to EXECUTE


Market Forces and Business Needs Market Forces  Retailer power  Consumer concerns about food safety; media attention  Increased legislation and regulations around food safety by FDA and other authorities  Changing consumer demands due to demographics and trends  Shorter product life cycles  Extreme price pressure and margin erosion  Restrictive consumer spending pattern  Market consolidation (globalization, M&As)  Increasing competition  Emerging private labels  New technologies reshaping the industry

 SAP AG 2006

Resulting Key Challenges  Develop new products faster and more effectively  Optimize supply chain  Increase efficiency in procurement  Optimize manufacturing  Ensure food safety and regulatory compliance  Improve sales efficiency


Develop New Products Faster and More Effectively Challenges

Strategies  Adapt to ever-changing

consumer tastes and requirements  Develop product efficiently  Address increased demands for

new products

SAP® can help you  Integrate all product-related

information  Reduce data redundancy and

inconsistency  Integrate into manufacturing

process

 SAP AG 2006

 Enable collaborative engineering  Consolidate product

development data and documents  Reduce development effort and

time-to-market

Benefits  Faster development by

creating reusable product specifications  Reduced time-to-market  Ensured competitive

advantage


Optimize Supply Chain Challenges

Strategies  Decrease process costs

 Reduce costs

 Create operational efficiencies

 Streamline supply chain

and supply chain transparency  Manage shelf-life-based picking

and distribution

processes  Improve supply chain control  Gain more supply chain visibility

 Ensure accurate and timely

shipments  Avoid out-of-stocks

SAP® can help you  Optimize distribution processes

 Improved operations excellence

 Optimize end-to-end planning

 Lower capital commitment

 Improve asset utilization

 Reduced operating costs

 Fully integrate logistics

 Higher customer satisfaction

management, including transportation and warehouse and inventory management  Shorten order-to-delivery cycles

 SAP AG 2006

Benefits


Increase Efficiency in Procurement Challenges

Strategies  Cope with ever-changing

quantity and quality of the raw milk  Manage complex payment

conditions  Cope with seasonal fluctuation

 Reduce costs  Streamline processes  Gain more visibility and

transparency  Improve relationship with

producers

 Create operational efficiencies

and transparency

SAP® can help you  Set up integrated and flexible

processes for procurement  Streamline raw milk collection

and reception  Ensure integrated quality

management  Track batches

 SAP AG 2006

Benefits  Increased demand planning

accuracy  Consistent internal and external

procurement reporting  Integrated processes


Optimize Manufacturing Challenges

Strategies  Base plans on a non-

standardized raw material  Define optimal product mix  Create operational efficiencies

and transparency  Optimize production

SAP® can help you  Set up integrated and flexible

processes for manufacturing  Monitor raw material utilization

and losses  Ensure integrated quality

management  Track batches

 SAP AG 2006

 Maximize raw material utilization  Increase demand planning

accuracy  Streamline processes  Gain more visibility and

transparency

Benefits  Improved asset utilization  Increased profitability of

produced product mix  Consistent cross-stages

monitoring  Integrated processes


Ensure Food Safety and Regulatory Compliance Challenges

Strategies  Align with governmental

regulations  Enable fast, effective product

recalls  Track and trace from “cow to

consumer”

 Support mid- and long-term

company success by ensuring regulatory compliance  Set efficient processes in place

to enable traceability  Allow targeted product recalls to

minimize costs

SAP® can help you  Track, monitor, and trace

batches and inventory  Streamline procurement,

production, and sales  Manage sales returns  Enable targeted product recalls

 SAP AG 2006

Benefits  Reduced penalty risk  Decreased risk of food-safety

compensation payments  Reduced risk of bad reputation  Lower operating costs


Improve Sales Efficiency Challenges

Strategies  Protect market share  Meet increased service level

expectations of customer  Get visibility in the sales process  Manage quality-based price

determination for raw material sales

SAP® can help you  Plan, track, control, and optimize

sales performance  Expand service processes  Strengthen collaboration with

partners and key customers  Track indirect sales and

customers  Ensure correct handling of

rebates

 SAP AG 2006

 Obtain first-hand information

about the market  Optimize process settlement in

sales  Increase customer service

offerings  Increase customer satisfaction

Benefits  Higher sales volume  Better account retention  Closer customer relationship  Optimal sales force operation  Higher customer satisfaction


Challenges, Strategies, and Benefits The Solution


SAP business One & Ratio Dairy One Description … Ratio Dairy One takes care of Milk Procurement and logistics … SAP Business One covers core business Modules … As a packed solution, both cover the total operational efficiency

Business Objectives

Analyze, Plan, and Develop

Procure

Market and Sell

Manufacture

Define business strategy and goals

Realize savings in aggregate purchasing

Understand company performance and profitability

Improve purchasing efficiency

Ensure tracking and traceability

Improve manufacturing efficiency Ensure quality management in manufacturing process

Improve marketing effectiveness

Increase sales effectiveness

Deliver and Service 

Establish closer contact with customer

Enhance control over delivery process

Complete logistical and financial integration

Key Performance Indicators

 SAP AG 2006

Gross Profit/Total Net Sales

Order Fulfillment Rate

Demand Forecast Accuracy

Raw Material Utilization and Losses

Inventory Turns

Warehousing/Distribution Costs


SAP ERP packaged solution for the dairy industry Suppliers & Partners

Analyze, Plan & Develop

Procure

Manufacture

Market & Sell

Deliver & Service

Sourcing & Procurement Milk Procurement from Producer Additional Raw Material Procurement Procure to Stock Internal Procurement Product Development Recipe Management

Manufacturing

Dairy Production Planning Dairy Process Control Sell & Deliver Sales Order Processing Raw Material Sales Returns Operational End-to-End Scenarios Traceability & Food Safety Inventory Management Quality Management Enterprise Management & Support Financials Financial Accounting

Cash Management

Asset Management

Controlling Standard Cost & Profit Center Accounting

 SAP AG 2006

Product Cost Planning

Milk rate controlling

Cost Object Controlling

Customers (e.g. Retailers) & Channel Partners


Generic Milk Scenarios Suppliers & Partners

Analyze, Plan & Develop

Procure

Manufacture

Market & Sell

Deliver & Service

Sourcing & Procurement Procure to Stock Internal Procurement

Sell & Deliver Sales Order Processing Returns Operational End-to-End Scenarios Traceability & Food Safety Inventory Management Quality Management Enterprise Management & Support Financials Financial Accounting

Cash Management

Asset Management

Controlling Standard Cost & Profit Center Accounting

 SAP AG 2006

Product Cost Planning

Milk Rate Control

Cost Object Controlling

Customers (e.g. Retailers) & Channel Partners


Procure to Stock  Supports price comparison of vendors’ offers

Suppliers & Partners

Analyze, Plan & Develop

Procure

Manufacture

Market & Sell

Deliver & Service

Sourcing & Procurement Procure to Stock Third Party Plan & Manufacture Production Planning Production

 Provides tools to gain greater spend visibility in procurement

Sell & Deliver Sales Order Processing Direct Store Delivery (DSD) Rebate & Bonus Management Commissions Indirect Sales Returns Empties Processing

 Helps to manage quotations, contracts, batch handling and quality

Industry Pain Points   

Improving purchasing activities efficiency Realizing savings in purchased value Allowing visibility on vendors’ conditions and services Ensuring tracking and traceability

Business Benefits  

 

Automate operational tasks Improve vendors’ selection and prices comparison through quotation handling Formalize agreements by contract management Guarantee quality check through goods receipt inspections

 SAP AG 2006

Operational End-to-End Scenarios Inventory Management Quality Management Traceability & Food Safety Cross Company Transactions Enterprise Management & Support Financials & Controlling Excise Duty (Beverage) G65

Solution Procurement of Stock materials

Procurement – Contracts

 Request for quotation  Prices Comparison

 Create contract: Quantity contracts; Value contracts; Delivery schedule  Create purchase requisition  Assign vendor to contract

 Purchase requisition  Purchase order processing  Goods receipt  Inspect goods  Batch number assignment  Stock update  Invoice verification

Customers, Consumers, Channel Partne rs


Internal Procurement  Encompasses cross-plant internal procurement of products including creation of all required documents for both with or without delivery  Provide functions to monitor stock in transit

Suppliers & Partners

Analyze, Plan & Develop

Procure

Manufacture

Market & Sell

Deliver & Service

Sourcing & Procurement Procure to Stock Third Party Plan & Manufacture Production Planning Production Sell & Deliver Sales Order Processing Direct Store Delivery (DSD) Rebate & Bonus Management Commissions Indirect Sales Returns Empties Processing Operational End-to-End Scenarios Inventory Management Quality Management Traceability & Food Safety Cross Company Transactions Enterprise Management & Support Financials & Controlling Excise Duty (Beverage) G65

Industry Pain Points  

Improving internal purchasing activities Ensuring tracking and traceability

Solution Stock transfer with delivery  Create stock transport order  Process delivery  Post goods issue

Business Benefits  

Automate operational tasks Increased visibility of stock and stock transfers

 SAP AG 2006

Stock transfer without delivery  Create stock transport order  Post goods issue

Customers, Consumers, Channel Partne rs


Sales Order Processing  Manage the entire customer order process — variable pricing, delivery, invoicing, and payment.

Suppliers & Partners

 

Sales  Process sales order  Billing  Payment

Business Benefits   

Improve sales execution timeline Improve order fulfillment rate Provide the customer with alternative services and methods for invoicing and payments

 SAP AG 2006

Manufacture

Market & Sell

Deliver & Service

Customers, Consumers, Channel Partne rs

Plan & Manufacture Production Planning Production Sell & Deliver Sales Order Processing Direct Store Delivery (DSD) Rebate & Bonus Management Commissions Indirect Sales Returns Empties Processing Operational End-to-End Scenarios Inventory Management Quality Management Traceability & Food Safety Cross Company Transactions Enterprise Management & Support Financials & Controlling Excise Duty (Beverage) G65

Solution

Industry Pain Points Managing variable pricing conditions Long order cycle times Meeting customers’ requests for improved services Managing sales returns cost effectively

Procure

Sourcing & Procurement Procure to Stock Third Party

 Includes Electronic Data Interchange (EDI), handling of consignment sales, and foreign trade

Analyze, Plan & Develop

Distribution  Picking & distribution based on shelf life expiration date  Freight settlement  Handling unit mgt.

Inbound/Outbound EDI Processing  Inbound sales order via EDI  Outbound billing document via EDI


Returns  Focuses on the processing of credit memos if no goods are sent back.

Suppliers & Partners

Analyze, Plan & Develop

Procure

Manufacture

Market & Sell

Deliver & Service

Sourcing & Procurement Procure to Stock Third Party Plan & Manufacture Production Planning Production

 Includes quality evaluation for returned goods and appropriate stock movement.

Sell & Deliver Sales Order Processing Direct Store Delivery (DSD) Rebate & Bonus Management Commissions Indirect Sales Returns Empties Processing Operational End-to-End Scenarios Inventory Management Quality Management Traceability & Food Safety Cross Company Transactions Enterprise Management & Support Financials & Controlling Excise Duty (Beverage) G65

Solution

Industry Pain Points 

Efficient handling & document complaints. Managing sales returns cost efficiently.

Business Benefits  

Returns and Complains  Process credit memos  Quality evaluation  Goods movement to blocked or unrestricted stock.

Enable corporate compliance strategy Effective batch-specific returns processing

 SAP AG 2006

Returns Processing  Ship pallets  Return pallets

Customers, Consumers, Channel Partne rs


Traceability and Food Safety  Capability to track and trace products at all stages of production, processing, and distribution

Suppliers & Partners

Analyze, Plan & Develop

Procure

Manufacture

Market & Sell

Plan & Manufacture Production Planning Production Sell & Deliver Sales Order Processing Direct Store Delivery (DSD) Rebate & Bonus Management Commissions Indirect Sales Returns Empties Processing

 Allow fast and efficient recall of a defective product batch

Operational End-to-End Scenarios Inventory Management Quality Management Traceability & Food Safety Cross Company Transactions Enterprise Management & Support Financials & Controlling Excise Duty (Beverage) G65

Industry Pain Points 

Complying with food regulations 

HACCP (Hazard Analysis & Critical Control Points)

EU (Article 18 of Regulation 178)

US (the US Bio-terrorism Act 2002)

Addressing growing food-safety concerns from consumers

Business Benefits 

Professionally managing a possible product recall Minimize risk of non-compliance with food & beverage regulations Effective batch-specific returns processing

 SAP AG 2006

Deliver & Service

Sourcing & Procurement Procure to Stock Third Party

Solution Quality Management  Quality planning  Quality inspection  Recording of laboratory analysis  Quality reporting  Quality improvement

Batch Management  Batch creation and determination  Batch-where-use lists  Recall batches and create follow-up activities  Manage batchspecific return processing  Manage batches based on shelf life expiration

Customers, Consumers, Channel Partne rs


Inventory Management  Consists of the whole procurement and delivery cycle with warehouse for the storage management, including quality inspection

Suppliers & Partners

Analyze, Plan & Develop

Procure

Manufacture

Market & Sell

Deliver & Service

Customers, Consumers, Channel Partne rs

Sourcing & Procurement Procure to Stock Third Party Plan & Manufacture Production Planning Production Sell & Deliver Sales Order Processing Direct Store Delivery (DSD) Rebate & Bonus Management Commissions Indirect Sales Returns Empties Processing

 Return rejected goods to the vendor

Operational End-to-End Scenarios Inventory Management Quality Management Traceability & Food Safety Cross Company Transactions Enterprise Management & Support Financials & Controlling Excise Duty (Beverage) G65

Industry Pain Points   

Maintaining low inventory levels Avoiding out-of-stock situations at retailers Establishing visibility to inventory levels throughout the entire supply chain

Business Benefits 

Reduce working capital by keeping inventory levels low Increase sales by reducing out-of-stock situations Improve consumer retention due to product availability

 SAP AG 2006

Solution Inventory Management  Integration with supply chain accounting  Goods receipt  Goods issues  Managing different stock categories  Inventory valuation

Warehouse Management  Storage Management  Quality Management  Quality Inspection  Return of goods

Transportation Management    

Plan transports Monitor execution Calculate costs Manage transportation settlement


Financials and Controlling  Helps to get an insight into all aspects related to accounting and controlling

Suppliers & Partners

  

Meeting local legal and fiscal requirements Improving administrative activities efficiency Maintaining focus on most profitable customers and brands

Business Benefits 

Implement an ERP solution fully compliant and continuously updated with local legal and fiscal requirements Improve efficiency in accounting activities due to a seamless process integration Enhance company profitability analysis through profit and loss calculation

 SAP AG 2006

Procure

Manufacture

Market & Sell

Deliver & Service

Sourcing & Procurement Procure to Stock Third Party Plan & Manufacture Production Planning Production Sell & Deliver Sales Order Processing Direct Store Delivery (DSD) Rebate & Bonus Management Commissions Indirect Sales Returns Empties Processing

 Provides streamlined functionalities that allows visibility, increases productivity and regain control of their business processes

Industry Pain Points

Analyze, Plan & Develop

Operational End-to-End Scenarios Inventory Management Quality Management Traceability & Food Safety Cross Company Transactions Enterprise Management & Support Financials & Controlling Excise Duty (Beverage) G65

Solution Financials  General Ledger accounting  Accounts payable accounting  Accounts receivable accounting  Bank accounting  Closing activities  Cash management  Assets management

Controlling  Standard cost and profit center accounting  Profitability analysis  Product costs planning  Product cost controlling

Customers, Consumers, Channel Partne rs


Our Specific Solution Offering for the Dairy Industry Suppliers & Partners

Analyze, Plan & Develop Procure

Manufacture

Market & Sell

Sourcing & Procurement Procure to Stock Internal Procurement Milk Procurement from Producer Additional Raw Material Procurement

Product Development Recipe Management

Deliver & Service

Dairy Food Manufacturing Dairy Production Planning & Process Control Sell & Deliver Sales Order Processing Returns Raw Material Sales

Operational End-to-End Scenarios Traceability & Food Safety Inventory Management Quality Management

Enterprise Management & Support Financials Financial Accounting

Cash Management

Asset Management

Controlling Standard Cost & Profit Center Accounting

 SAP AG 2006

Customers (e.g. Retailers) & Channel Partners

Product Cost Planning

Cost Object Controlling


Product Development with Recipe Management  Managing the fast and efficient product development by structured reusable product specifications

Suppl iers & Partners

Analyze, Plan & Devel op

Procure

Manufacture

Market & Sell

Prod uc t De velop ment Recipe Management

Manufactu ri

ng Dai ry Producti on Planning Dai ry Process Control

 Seamless integration into the production planning and execution process

Sell & Deliver Sal es Order Processing Raw Materi al Sales Indi rect Sales Direct Store Del ivery (DSD) Opera tion al End-to-End Scen a rios T raceability & Food Safety Inventory Management Quali ty Management Cro ss Company T ransacti ons Ente rprise Manage ment & Suppo rt Fi nancial s Control ling

Industry Pain Points  

Slow and inefficient product development Changing consumer tastes and requirements Increasing demand for new products

Business Benefit  

Reduce development cycle time & costs Ensure company-wide consistent product information Reduce time-to-market to gain competitive advantage

 SAP AG 2006

Solution Product Data Management  Maintain product specifications  Label Management  Multilevel recipe mgt.  Define Batch Management

D eli ver & Servi ce

Sourcing & Procure men t Milk Procurement from Producer A dditional Raw Material Procurement P rocure to Stock

Product Lifecycle Management  Document Management  Change Management  Integrate Recipe into production process  Create master recipe  Create process order

Customers (e.g. Retail ers) & Channel Partners


Milk Procurement from the Producer  Encompasses the efficient procurement and collection of raw milk

Suppl iers & Partners

Analyze, Plan & Devel op

Procure

Manufacture

Market & Sell

D eli ver & Servi ce

Customers (e.g. Retail ers) & Channel Partners

Sourcing & Procure men t Milk Procurement from Producer

 Ensure compliance with high quality standards and traceability requirements

A dditional Raw Material Procurement P rocure to Stock Prod uc t De velop ment Recipe Management

Manufactu ri

ng Dai ry Producti on Planning Dai ry Process Control Sell & Deliver Sal es Order Processing Raw Materi al Sales

 Calculate payments based on quantity and quality characteristics

Indi rect Sales Direct Store Del ivery (DSD) Opera tion al End-to-End Scen a rios T raceability & Food Safety Inventory Management Quali ty Management Cro ss Company T ransacti ons Ente rprise Manage ment & Suppo rt Fi nancial s

 Monitor procurement and payment process

Industry Pain Points  

Managing the complex payment conditions Coping with seasonal fluctuation and changing demands Complying with the high quality standards and traceability requirements

Business Benefits 

 

Enable accurate payment both for producer and transport service provider Provide payment reporting to the producer Streamline raw milk collection & reception process

Control ling

Solution Milk Collection

 Maintain standard  Dairy reception routes cockpit  Provide route list to  Process purchase truck driver Order  Automatic creation of inspection lot and batch number  Batch management

Milk Payment  Calculate payment for producer  Calculate payment for transport service provider  Settle payment  Maintain payment calculation scheme

 SAP AG 2006

Milk Reception

Reporting & Analysis  Monitor raw milk quantity & quality characteristics  Payment reporting

Milk Analysis  Gather results of inspection lots from producer samples  Gather results of inspection lots from tank truck samples  Create usage decision for inspection lots


Additional Raw Material Procurement  Supports the additional purchase of raw materials from other companies on the determined shortage in the demand planning process

Suppl iers & Partners

Analyze, Plan & Devel op

Determining demand for additional required raw material due to everchanging quantity and quality of collected raw milk Managing the vendor payment based on raw material quality characteristics

Business Benefits  

Increase demand planning accuracy Handle the quality-based payment for the vendor

Market & Sell

D eli ver & Servi ce

Customers (e.g. Retail ers) & Channel Partners

Manufactu ri

ng Dai ry Producti on Planning Dai ry Process Control Sell & Deliver Sal es Order Processing Raw Materi al Sales Indi rect Sales Direct Store Del ivery (DSD) Opera tion al End-to-End Scen a rios T raceability & Food Safety Inventory Management Quali ty Management Cro ss Company T ransacti ons Ente rprise Manage ment & Suppo rt Fi nancial s Control ling

Solution Raw Material Demand Planning

Raw Material Reception

 Determine required  Post goods receipt additional raw  Automatic creation materials of inspection lot  Create purchase and batch number order  Batch management

Raw Material Payment  Calculate vendor payment for additional purchased raw material  Settle payment  Maintain payment calculation scheme

 SAP AG 2006

Manufacture

Prod uc t De velop ment Recipe Management

 Calculate vendor payment based on the raw material quantity and quality characteristics.

Industry Pain Points

Procure

Sourcing & Procure men t Milk Procurement from Producer A dditional Raw Material Procurement P rocure to Stock

Reporting & Analysis  Monitor raw material quantity & quality characteristics  Payment reporting

Raw Material Analysis  Gather results of inspection lots  Create usage decision for inspection lots


Dairy Production Planning and Process Control  Manage the multilevel manufacturing processes including seamless batch and quality management

Suppl iers & Partners

Analyze, Plan & Devel op

Procure

Manufacture

Market & Sell

D eli ver & Servi ce

Customers (e.g. Retail ers) & Channel Partners

Sourcing & Procure men t Milk Procurement from Producer A dditional Raw Material Procurement P rocure to Stock Prod uc t De velop ment Recipe Management

Manufactu ri

ng Dai ry Producti on Planning Dai ry Process Control Sell & Deliver

 Incorporates the ever-changing quantity and quality of the raw material

Sal es Order Processing Raw Materi al Sales Indi rect Sales Direct Store Del ivery (DSD) Opera tion al End-to-End Scen a rios T raceability & Food Safety Inventory Management Quali ty Management Cro ss Company T ransacti ons

 Provide powerful tools to gain a cross-stages raw material controlling

Industry Pain Points   

Production Planning based on a nonstandardized raw material High cost of the raw material comparing to the total production costs Defining optimal product mix in order to maximize utilization & profitablity

Business Benefits  

Optimize and streamline production process Increase profitability by improved visibility to raw material utilization and losses Comply with the high quality standards and traceability requirements

Fi nancial s Control ling

Solution Production Planning  Demand planning based on historical data  Production planning synchronous to sales  Material resource planning (without shelf-life)  Simulate planning  Graphical capacity planning

Controlling & Analysis  Cross-stages raw material controlling  Product costing  Batch information cockpit  Production information system

 SAP AG 2006

Ente rprise Manage ment & Suppo rt

Process Control

Quality Management

 Maintain product master data & recipes for multilevel production  Batch management across all stages  Separate raw milk into components  Material valuation

 Create inspection lots for semifinished and finished goods  Gather results of inspection lots  Create usage decision for inspection lots

 Manage shelf-life expiration date for final products


Raw Material Sales  Supports the sales of raw materials between dairies based on the raw material requirements and the available surpluses

Suppl iers & Partners

Analyze, Plan & Devel op

Procure

Manufacture

Market & Sell

D eli ver & Servi ce

Customers (e.g. Retail ers) & Channel Partners

Sourcing & Procure men t Milk Procurement from Producer A dditional Raw Material Procurement P rocure to Stock Prod uc t De velop ment Recipe Management

Manufactu ri

ng Dai ry Producti on Planning Dai ry Process Control

 Pricing and distribution are based on the raw material quality characteristics

Sell & Deliver Sal es Order Processing Raw Materi al Sales Indi rect Sales Direct Store Del ivery (DSD) Opera tion al End-to-End Scen a rios T raceability & Food Safety Inventory Management Quali ty Management Cro ss Company T ransacti ons Ente rprise Manage ment & Suppo rt Fi nancial s Control ling

Industry Pain Points 

Managing variable pricing conditions based on quality characteristics

Solution Production  Manage process order  Create inspection lot

Business Benefits 

Simplify price determination by using the integrated batch and quality management system Improve sales execution timeline

 SAP AG 2006

Billing  Invoice processing  Price determination based on quality characteristics

Sales  Process sales document

Distribution  Picking based on quality characteristics  Create inspection lot for picked raw material  Usage decision and goods issue


SAP ERP for the Dairy Industry Provides Increased Shareholder Value for Your Business Business Objectives Revenue Growth

Business Areas Improve customer satisfaction

Business Opportunities Improve order fulfillment Improve sales execution timeline Improve customer understanding

Increase sales

Shareholder Value

Distribution

Improve order fill rate Reduce operating costs and increase efficiency

Finance

Enable detailed profitability analysis

SAP B1 & Ratio Dairy One (

Sales and Customer Order Indirect Sales Raw Material Sales Production BOM Financials and Controlling

Improve efficiencies in accounting activities

Reduce Cost

Customer service Procurement

Increase efficiency for sales returns Improve transparency in dairy procurement

Milk Procurement

Lower raw materials costs

Procure to Stock

Realtime access to production cost information

Production Reduce Working Capital Reduce Risk

Returns

Product Cost Controlling

Improve yield and reduce waste Calculate and monitor production costs seamlessly

Manufacturing

Inventory

Optimize inventory usage

Inventory Management

Comply with food regulations

Utilize full track-and-trace capability

Food Safety

* For further details, please refer to the SAP ERP for the Dairy Industry Brief.

 SAP AG 2006


Ratio Dairy one